How Mixue’s Founder Built a $16.5bn Empire Around $1 Ice Cream

Before Mixue’s blockbuster IPO debut in Hong Kong on 3 March, its founder Zhang Hongchao almost walked away from it all.

Not once. Not twice. But multiple times.

His ice cream empire — now valued in the billions — was built on a mountain of failures, from botched expansions to franchise collapses and supply chain meltdowns.

At one point, after being forced to relocate his store for the fifth time, Zhang was so burnt out he said, "I might as well jump off a building."

But he didn’t.

He dug in. He adapted. He kept building.

From Shaved Ice Stall to Market Giant

Born in the village of Shangqiu to farmer parents, Zhang Hongchao opened a shaved ice stall in Zhengzhou, the capital of east-central China’s Henan province, in 1997, scraping by on 3,000 yuan loan from his grandmother — his first angel investor.

(Funny story: Fearful of him getting pickpocketed on his journey from their town to Zhengzhou, his grandmother even sewed a hidden pocket inside Zhang’s underwear so he could safely transport the cash!)

Fast forward to today, that stall grew into Mixue Bingcheng, the world’s largest fast-food chain by store count, with over 45,000 outlets across Asia.

Earlier this week, Mixue’s IPO in Hong Kong was one of the most successful debuts of the year, surging more than 40% on day one and adding billions to its valuation.

Its success, 27 years in the making, was built on hard lessons, wrong turns, and near-total collapses.

What Mixue Got Right

Here’s what every entrepreneur and business leader can learn from Zhang’s battle scars:

1. Failure is part of the journey — if you keep moving.

Zhang’s first shop was forced to relocate four times due to urban development.

Each move drained his savings and reset his business to zero.

At one point, realising that there was no demand for his shaved ice in the winter, he tried selling oranges to make ends meet. The partnership ended in distrust and losses.

He then moved to Anhui to sell candied hawthorns, hoping for a breakthrough.

It flopped. He returned to Zhengzhou empty-handed.

Instead of giving up, he kept refining his offerings until he found the sweet spot in 2006 — affordable soft-serve in egg roll cones, a hit among university students and office workers. This later expanded into Mixue’s signature blend of ice cream and tea in 2014, creating a year-round, recession-proof product line.

🔶 Takeaway: If your current model isn’t working, evolve. But don’t stop moving.

2. Scaling fast without systems will break you.

By 2017, Mixue’s 5,000-store network was crumbling.

Franchisees cut corners, sourced ingredients externally, and delivered inconsistent products — leading to mass closures. Franchise numbers plunged below 3,000 as trust eroded.

Zhang Hongchao hit reset. He paused expansion, rebuilt quality controls, and took full ownership of the supply chain.

Today, Mixue generates most of its revenue by supplying ingredients and equipment to its global franchisees, while keeping delivery free to entice more people to step forward. Its five mega-factories spanning 790,000 square metres, 27 warehouses, and integrated logistics network ensure consistency at scale.

🔶 Takeaway: Speed matters, but build a stable structure before you scale.

3. Premium doesn’t always mean better.

Zhang’s younger brother, Zhang Hongfu, tried to upgrade Mixue into a high-end chain to compete with DQ and Happy Lemon.

The first attempt in 2009 with My Share barely broke even after two and a half years.

The second attempt in 2018 with M+ was killed off by Zhang Hongchao himself, who saw it as contradictory to Mixue’s DNA.

Mixue thrives because it’s cheap, accessible, and scalable — not because it tries to be something it’s not.

🔶 Takeaway: Know what makes your brand work. Then stick to it.

4. Listen to good advice, even when it’s expensive.

During the construction of Mixue’s Wen County factory, engineers advised Zhang to raise the foundation by 50 cm to prevent flood damage.

Some of his team pushed back, calling it unnecessary and expensive.

Zhang hesitated, but ultimately approved the change.

In 2021, catastrophic floods hit Henan, devastating nearby areas.

Mixue’s factory? Completely unharmed.

That one decision saved the company from millions in losses.

🔶 Takeaway: Short-term costs can be long-term survival moves. Make them wisely.

5. Founders need to check their own egos.

Zhang and his brother frequently clashed on expansion strategies.

In 2015, after a particularly heated disagreement, Zhang Hongchao temporarily quit Mixue.

The company stalled without him. He came back, refocused on fixing operations, and Mixue exploded in growth afterward.

He could have let his frustration get the best of him. Instead, he learned, returned, and rebuilt better.

🔶 Takeaway: The best founders also falter. But they know when to reset and refocus.

💡 The Big Takeaway

Mixue’s success was not inevitable.

It came from failing forwards, adapting, and building for scale the right way.

Zhang Hongchao outlasted and out-executed.

And in doing so, he proved to the world that the next big idea doesn’t have to come from the usual places — but from those who dare to think differently and persist through the toughest challenges.

Even if they started from a humble shaved ice stall in Zhengzhou.